Cabinet approved amendment to the Gratuity Act to raise the ceiling from Rs 3.5 lakh to Rs 10 lakh

The Cabinet on Thursday approved an amendment to the Gratuity Act to raise the ceiling from Rs 3.5 lakh to Rs 10 lakh. The Bill to amend the Act will now go to Parliament, a government official told.

Every salaried person, who has completed five years of government or private sector service, is eligible for half a month’s salary as gratuity for every completed year of service. But the gratuity pay of those with higher salaries is now limited at Rs 3.5 lakh. The proposed amendment raises this to Rs 10 lakh. Every employer with more than ten salaried workers is mandated to provide gratuity to the eligible employees. Many companies, however, do not keep the gratuity liability adequately funded. That is, they make provisions for future payment, but do not set aside funds towards the future payment. Listed companies are expected to disclose their gratuity liability.

Download Payment of Gratuity Amendment Bill 2010

Related Post:-

1. Cabinet approved amendment to the Gratuity Act to raise the ceiling from Rs 3.5 lakh to Rs 10 lakh

2. Lok Sabha passes bill to hike gratuity ceiling to Rs. 10 lakh from Rs. 3.50 Lakh

3. Gratuity Limit increased to 10 Lakh as per Income Tax Act and Gratuity Act in Rajya Sabha

4. Payment of Gratuity (Amendment) Act, 2009 – Amendment in section 2 and insertion of section 13A, Change in definition of employee

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142 responses to “Cabinet approves increase in Gratuity limit from Rs 3.5 lakh to Rs 10 lakh”

  1. C.Ravi says:

    I have taken VRS during April 2006 and i was paid only 2.5lakhs gratuity can u please confirm the Hon President approval whether 2006 or 2007

  2. ranganath says:

    At least now we hope. modi government will look into disparity made, and will revise the the effective date of enhancement of. Gratuity to 10 laks according to 6th paycommisson uniformly to all including cpsu ie from 2006,/2007

  3. kadrao says:

    I have complete 26  year service in army  no 14550214l Ex hav ftr (fd)   ‘y’group my graute is ?

  4. Sastry says:

    May Day 2012 Labour Ministry pro labour advertisements are over. Only action is awaited. Is the labour ministry and labour Union representatives are hearing?

  5. A.K.SINHA says:

    i am of a strong belief that all the section of society and now joined by govt.are not interested in senior citizen.No one bothers to look into their care.Now needed more but atleast dont divide this group that too in the terms of years.i extend all support towards this amended act and can come to one conclution.let 1.1.2006 be one date for all segment A.K.SINHA ,CHAKAN ,PUNE

  6. kc klair says:

    There appears to be a sinister design on the part of this govt to effect gratuity date wef 24.05.2010 instead of 1.1.2006. Parliament has not indicated any date. It appears that the Govt has not only befooled the affected employees but also the parliament, reasons for which are only known to the labour minister. It will be in the fitness of things for the labour minister to confide this to the countrymen. It is not for nothing that the ruling party is getting a drubbing in elections everywhere. It is high time they see writings on the wall and make amends.

  7. AMIT CHHABRA says:

    HI SIR HOW R U I AM AMIT CHHABRA & MY DAD WAS IN PNB HIS BASIC PAY WAS 17980 & WE GOT DEATH GRATUITY 3.5 LAKHS ONLY PL GUIDE ME BCOZ WHEN I GO TO BANK THEY DONT GUIDE ANYTHING & SAY ABHI KUCH NAHI KAH SAKTE .PL HELP THAT CAN I GET THAT BALANCE AMOUNT .

  8. Satish Kumar Sinha says:

    Sir,
    I retired on 31 Oct 2009 from the Indian Air Force after serving 29 years as Junior Warrant Officer. I have been paid Rs 3.5 Lac as Gratuity. Am I eligible to get enhanced rate of Gratuity Rs 6.5 Lac? If anyone knows about this, they are free to reply me.

  9. zankar majithia says:

    i retired on dt.31-05-2007, i rcvd. 3.50.000 for gratuity, let me inform that new amendment is applicable for me pl inform. am i eligible for gratuity amt. upto rs. 10,00,000/-.

  10. PRADEEP KUMAR SHARMA says:

    I joined central govenment service(Postal deptt.) on 27.01.2005 and resigned on 18.02.2010 under new pension scheme, Now Is am eligible for gratuity under new pension scheme
    suggest me court case in this regards
    thanks

  11. Vinod Kumar says:

    Sir, Pl. tell me some questions 1. My job 27.05.2004 to 14.01.2010, Ministry of Coal, Shastri Bhawan, New Delhi. As a typist 5000/- PM (Contract basis). My question, I am eligible for Gratuity.

  12. Boby says:

    As per News papers our Hon. Politicians are demanding Ex-gratia of Rs.10 lakh for people who died in hooch tragedy. Employees who retired after 3 decades of service do not get Gratuity of Rs.10 lakh. What a tragedy; No takers on the issue.

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